Does a "good" school district mean your high school student will be successful?







By Rajkamal Rao  

Image Courtesy: Zillow


When families hunt for homes, an important consideration for at least four decades has been the reputation of the school district. In North Texas, Frisco, Plano, Coppell and Carroll ISD rank relatively high in the minds of home shoppers; Ft. Worth, HEB-ISD and Lewisville, not so high.

While there are many reasons to buy a home in a particular area (such as proximity to one's work place, shopping, ethnic neighborhoods, highways, friends, extracurricular activities for children and asset appreciation), doing so only because of the reputation of the school district may be suboptimal given the changing K-12 environment in today's public schools. That is, a good school district does not automatically translate into student success in learning, academics, and extracurricular activities.
 
But the reputation of the school does matter when it comes to college admissions, especially at the elite institutions. In a provocative article in the Atlantic, "Private Schools Have Become Truly Obscene," writer Caitlin Flanagan describes all that is bad with private high schools (hyper-aggressive parents arguing about students' grades, uber-school buildings that cater to students' every need, and outrageous annual fees including some schools that charge more than $50,000/year). But she concedes that the one advantage that sets private high schools apart is that they send huge numbers of students to the most elite colleges.

Flanagan sources her information from the "Best High Schools In America" website which ranks all high schools (public and private) on a single objective measure: the number of students a high school sends to top colleges. With over 12,600 records, PolarisList says it is the largest aggregator of Harvard, Princeton, and MIT matriculation data for US high schools.

In North Texas, the following schools send the most high school students to Harvard, Princeton, and MIT (data based on graduating years 2015-18).
  1. Plano ISD (all three high schools):  27 out of 4,065 students
  2. St. Marks Academy (Private): 21 out of 86 students
  3. Hockaday (Private): 16 out of 120 students
  4. Greenhill (Private): 5 out of 120 students
  5. Coppell HS: 5 out of 725
  6. Flower Mound HS: 3 out of 856
  7. Centennial HS (Frisco): 2 out of 548
  8. Frisco HS: 1 out of 449
Flanagan's point is well made. Your odds of getting into elite institutions are much higher if students attend private schools. But not everyone can afford their high costs. For the rest of us who depend upon a public school education, Plano appears to be the best pick.
 
Attempting to frame the entire discussion on one objective measure (the number of students a high school sends to top colleges) is impractical and meaningless for most families. We want to assure them that the Texas Education Agency (TEA) is one of the the best state education departments in the country and provides hard-working students an excellent choice of colleges and careers. We hope that this post will help lower the financial stress on families trying to save or borrow extra money - simply to be able to afford a "good" school district.

Curriculum standards

In 2015, the TEA dramatically changed the curriculum standards for every public school in the state. It introduced four tracks to get students to be college-ready, and each track requires 26 credits to graduate. It introduced the idea of endorsements using which high school students could "specialize" in defined streams, such as STEM or Business & Industry.

In most cases, TEA curriculum standards exceed the requirements of even the most elite colleges. Stanford requires three years of foreign language (Language other than English) study in high school. With the DAP track, the TEA requires three years of LOTE study. With the Foundation track plus an endorsement in Arts and Humanities (available in every school district in the state), a student must take four foreign language credits, one higher than what Stanford needs. So, whether a student is in Frisco or Lewisville or East El Paso, she can easily meet the foreign language requirement if that is what she wants.

Then, there are curricula set by national and international organizations. While high school performance continues to be crucial, it is now even more important to differentiate a student's profile by taking Advanced Placement (AP) or IB courses. These are taught in school but culminate in external evaluation by the College Board or the IB Organization. Practically every school district offers AP courses, so, here too, a single school district is not decidedly superior.




Learning opportunities

One area where "good" schools historically differentiated themselves was in the learning opportunities offered to children, by offering a wide variety of electives, honors and CTE courses in school. But today, the trailing schools are not far behind, thanks to an important development: online learning.

In Texas, students from any public school district (frankly, even those who are home-schooled) can take a variety of online courses from TXVSN or UT High School. Both are fully accredited by the TEA and school districts are required to honor courses completed online. Some schools impose limits on how many online courses one can take in what year and nearly all schools do not provide weighted GPA grades for courses completed online, but prior complaints from even a few years ago that a student is completely shut out of taking a desired course because it is not offered by the school are no longer relevant.

While learning online is not for everyone, this is increasingly the path chosen at work and higher education institutions worldwide. The state of Arkansas requires high school students to complete at least one online course for credit, in recognition of this trend.

If a student is firmly opposed to taking online courses, he can always register for dual credit courses at brick and mortar institutions, like community colleges and even local universities.

What about teacher quality? This is a subjective measure and we all have our favorite and not-so-favorite teachers. But one thing that has changed the K-12 landscape is the popularity of Khan Academy, a resource available 24x7, on demand, for free. Khan Academy has largely neutralized the teaching advantage of "good" school districts.


Funding
A common argument for buying property in "good" school districts is that because of their ability to receive more funding based on higher property tax assessments, they are able to invest more for school infrastructure and operations, like paying teacher salaries.

But to a large extent, municipal bond markets have neutralized this advantage. In fewer than 6 years, HEB ISD has raised more than $500 million for school investments, all through bonds. Also, the state of Texas sends billions of dollars to disadvantaged school districts.

Competition
On the flip side, with so many high-earner and motivated families moving to wealthy school districts, competition among learners is fierce. Such a breakneck contest for that extra point on a test has resulted in high levels of stress both among students and parents. Many families engage in additional tutoring and academic practice, simply to keep up with the competition.

In some cases, competiton has veered into becoming unhealthy. Some students try to cheat or otherwise game the grading system simply to get a high enough GPA to improve class rank.

To limit unhealthy competition, starting the 2018-19 school year, Plano ISD started to not publish the weighted average GPA and class rank on report cards, until the second term of the 11th grade. This is the equivalent of a tennis chair umpire only announcing your points in a match but not disclosing the points of the player across the net. This is a terrible decision because students do like to know how they are doing when compared to their peers.

Many families have asked me this question: Is it time to get out of a "good" school district and move to one which is less competitive in which a student's class rank can potentially improve?  This is a serious question because an improved class rank at the margins could potentially earn a student automatic admission to the University of Texas. The Texas Top 10 rule does not differentiate good high schools from bad. Further, graduating from an under-represented school district could make a student's profile more appealing to top colleges.

Just think about the logic here. Families which have paid a premium to buy a home in a "good" school district years ago are now considering leaving it to go to a "bad" school district. If this logic makes sense, why buy in the wealthy district in the first place?

Class rank considerations
You need a minimum of 26 credits to graduate from a TX high school. Most students begin earning high school credits in the 8th grade.

Class rank is an important metric in TX and is computed for ALL high school classes. If you're moving to TX for the 10th grade, make sure that your destination school honors your student's earned GPA with weights. Unfortunately, most school districts will not commit to evaluating your transcript until after you move, so you must be ready to fall behind in class rank.

By state law, the class rank computation has to be finalized by the end of the 11th grade, with an update permitted after the first 9 weeks of the 12th grade. So, college admissions in the state largely rely on the 11th-grade class rank and the 12th-grade performance is practically irrelevant for most students. So, if you're moving to TX for the 10th grade, your student can only earn a fair class rank for the 10th and 11th grades, because credits earned until the beginning of 10th grade are subject to school district interpretation.

At UT Austin, 75% of the 10,000 incoming freshman seats are automatically granted to those in the top 6% percent of each high school class. No other factor is considered. If your student is not in the top 6%, he or she has to compete for the 2,500 seats in the holistic pool. Last year, there were 47,500 applications for those 2,500 seats from all over the world - resulting in a selectivity of 5.5%, no different from Harvard or Yale.


Residency considerations for in-state tuition

The 3-year rule to claim TX residency applies to those seeking an independent domicile provided the student graduates from a TX high school. Once the student establishes this domicile, he or she can continue to claim TX residency for the purpose of in-state tuition regardless of the residency or work status of their parents.

The 12-month rule applies to students who wish to claim a "dependent" domicile. To earn this, the student's parents must establish a home or work presence for at least 12 months. Once this condition is met, the student can claim in-state tuition.

There are several ways to prove residency in these situations. The rules are easiest for US Citizen and PR families but a little more complicated for those on H-1B or L-1 visas.

Takeaways

Buying a home is an extremely private decision and should remain so. But the reputation of the school district alone should not drive the home buying decision because changing K-12 trends no longer make a "good" school district essential to student success.

In fact, there's increasing evidence to the contrary.




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How we help high school seniors get into choice colleges

By Rajkamal Rao  




We will be glad to help your 12th grader (or rising 12th grader) through every step of the college admissions process.

We are honored to have helped hundreds of student clients in the United States and from around the world win admission to top colleges and universities in the U.S. For the Class of 2024, several clients reported getting interview calls from the very best schools, including MIT, Caltech, Yale, Columbia, CMU, Princeton, Penn, Brown, Cornell, CMU, and Johns Hopkins. Several students got confirmed admissions to Columbia, Cornell, Yale, Brown, Princeton, Rice, NYU, Vanderbilt, Wash U and CMU. A few got admissions to direct MD programs.

Many clients reported getting into some of the best public Ivys. UT Austin, UC Berkeley, Georgia Tech, the University of Illinois-Urbana-Champaign, UCLA, the University of Michigan, Purdue, the University of Virginia, and the College of William and Mary repeatedly made the list. Clients also got into Texas A&M, Arizona State, the University of Washington, the University of Pittsburgh, and Virginia Tech.

We place all of our expertise online. There's a good chance that our answers to many of your questions are already available for free. We also conduct numerous low-cost webinars to educate parents and children about all things college. We publish event details on our Facebook page so, please follow us on Facebook.

We recognize that the college admissions process is complex and parents need professional advice tailored to the needs of their 12th grader. Here are the various value chain elements of our service including the various proprietary tools and decks.
  1. College selection and finalization, including evaluation of ED/EA strategies. [Included: Long-form resume template, BS/MD deck for interested students].

  2. Advice for H-1B families with children on H-4 visas.

  3. Describing the step-by-step task plan to successfully complete a college application. [Included: College selection master tool, Campus visit questionnaire]. Our tool prompts clients to plan regular checkpoint/status calls to review progress.

  4. Essay reviews for platforms such as the Common App, the Coalition App, ApplyTex, MIT Admissions, and UC Apply. We follow the same process as the top schools with two professionals reviewing your essays independently. 

  5. Supplemental essay reviews.

  6. Financial Aid and scholarship planning. [Included: Our comprehensive guide to college financial planning].

  7. Assistance in successfully completing college applications, such as for ApplyTex and the Common App. We provide detailed pointers about how to obtain and send transcripts, recommendation letters, and SAT/ACT scores.  

  8. Assistance in petitioning high school or college administrations to handle extraordinary situations, such as requesting in-state classification for tuition, credit transfer, visa issues, or other exceptions.

  9. Mock interview practice. [Included: Interview questions after the practice session].

  10. Deciding on which offer of admission is the best, using our structured, analytical approach.

  11. Any additional support.

Bonus: At the end of every one-on-one counseling session, we will provide you with a summary of discussion points and a clear set of action items for future conversations. Such a summary may include links to our proprietary tools, templates or posts. This is a free service.

When it comes to pricing, we do not want to constrain parents with burdensome fixed-price all-in-one contracts because not all students need help in all the above areas. Some may need assistance only for essays, or others a combination of elements in the value-chain list.

Our fees structure follows a hybrid model - significant free advice via our popular posts on this website, Facebook page, and public seminars; a variable pay-by-the-hour counseling component, and a fixed-price offering for essay and resume reviews.

All of our counseling session pricing is by the hour. Please review our fees section. In our simple pay-by-the-drink model, you're always in control of what specific area of college admissions you want help with, how much engagement you wish to have, and how much you wish to spend.

All of our essay reviews can now be ordered from a simple menu-driven product list resembling an online store. You prepay for our service using a fixed-price model and get full buyer protection from PayPal.

 
Please check out client reviews on Google.


A Note About Rao Advisors Premium Services
Our promise is to empower you with high-quality, ethical and free advice via this website.  But parents and students often ask us if they can engage with us for individual counseling sessions. We are indebted and privileged to have earned their trust in matters which are so important to them. Please check out our public Google reviews to see what they say about us.

Individual counseling is part of the Premium Offering of Rao Advisors and involves a fee.  Please  contact us for more information.




How H-1B parents with children on H-4 visas should plan for college admissions





By Rajkamal Rao  








There are many H-1B parents whose rising senior children on H-4B visas face a dilemma about how to protect their immigration status and still attend college.

There are two main questions:  What should the immigration status of the children be when they enter college? H-4B or F-1? And, what kinds of scholarships and financial aid can these children find applicable?


Immigration stages and the priority date

Which immigration status the child decides to be in largely depends upon the green card priority date of the H-1B parent.

There are three major steps to obtaining a green card.
  1. The Labor Certification or PERM stage (Application for Permanent Employment Certification).
  2. The Immigrant Petition (I-140) stage.
  3. The Adjustment of Status (I-485) stage.
The priority date is the date on which the Labor Certification was filed with the Department of Labor, or, if no Labor Certification is required, as in the case of applicants with exceptional ability, the date on which USCIS received the I-140 petition.

The priority date is simply the reserved position in the queue to obtain a green card.

With so many H-1B employees applying for I-140s, and only about 7,900 green cards issued each year, the wait is long. Estimates are that anyone with a priority date after 2009 is in this line, those closer to 2009 at the head of the line, and those with a priority date of today at the very end of the line. Everyone in the line is considered to be in the green card backlog.

When the priority date becomes current - that is, there is a green card available for the employee and their family - H-1B families enter the I-485 stage.

When the I-485 is properly filed, USCIS will initially respond by mailing a letter that confirms receipt of the application, via Form I-797C, approximately 2-3 weeks after the I-485 filing. This is the H-1B employee's confirmation that they are officially an “adjustment of status” applicant. It takes 8-14 months after receiving the I-797 to obtain the physical green card.

What should the immigration status of the children be when they enter college?

Children of H-1B families are by default on H-4 dependent visas. These are restrictive and do not permit any meaningful activity other than going to school. Working for gain is forbidden, although, the experience of work in college (on-campus employment, teaching assistant roles, internships) is integral to the college experience. The H-4 EAD visas that permit H-1B spouses to work are not granted to children.

For students whose families are in the I-485 stage, it may be appropriate to stay on the H-4 visa and wait out the 8-14 month processing time to get the green card.

If the family is not yet at the I-485 stage, students should consider converting to an F-1 visa so that they can pursue on-campus employment and internship opportunities. However, such a move could force them to pay out-of-state tuition fees [see next section]. The decision to convert to F-1 has to balance these two conflicting priorities. In some cases (see points 2 and 3 below), converting to F-1 may be the only way that a student can legally remain in the United States.

The process to convert to F-1 is fairly straightforward. In general, you need three documents to file your I-539 - (see item #6 in the document) - the official form that USCIS requires to grant you the change of status: your I-94, the I-20 from your target institution and a financial statement to demonstrate that the cost of a year's attendance in college (tuition, fees, books, room and board) is covered. Some institutions process the so-called Change of Status for you but you still have to do the federal paperwork. 

  1. Once the student sends in a deposit to a college and locks in a seat, the student should request the college to process a conversion to an F-1 visa. The University of Missouri has published an excellent checklist of the process. Rochester also has a detailed guide.

  2. This conversion may be especially necessary if the H-1B parent becomes unemployed and is forced to leave the U.S when the student is in college on a H-4 visa. Job loss may even occur when the student is a rising high school senior. Luckily, U.S. law allows for high school students at public high schools to study for an entire academic year on an F-1 visa, although, the student must technically reimburse the high school for tuition expenses.

  3. If a student is younger and the parent has to return to their home country, the student can still convert to an F-1 visa but switch to a private high school. Students on an F-1 visa can pursue a full secondary education – and even earn a diploma – but only at U.S. private high schools.
As long as a student is younger than 21, they can continue to appear on their parents' I-485 application and still get their green cards. As a student turns to being within 9 months of their 21st birthday and the parents haven't still obtained their green cards, the student has to find other ways to remain in the United States - convert to F-1, obtain an H-1B sponsorship - or even consider marriage to a citizen or permanent resident!

Scholarships and financial aid for H-1B children

The majority of public scholarships - such as FAFSA grants, work study, and subsidized loans - are unfortunately not available to H-1B families. Many states operate financial aid programs specifically for such families - like the State of Texas TASFA program.

But the best news for H-1B families is that children can attend public colleges and universities as in-state residents. Domicile is a technical term that colleges use to determine whether someone is resident in a state or not. The legal definition of domicile is that it is a place that a person treats as their permanent home, or lives in and has a substantial connection with. States permit H-1B families to claim domicile on the theory that these families want to immigrate to the United States and make the state their future home.

Many children of H-1B families know of no homes other than those in America. State law is fairly uniform and we will use Texas as an example. If a child is a dependent of an H-1 or L-1 parent, and if the child graduates from a Texas public high school and has attended that school for three years leading to obtaining a high school diploma, the student is automatically deemed to have earned independent domicile in the state of Texas and is eligible to be treated as in-state for the purpose of tuition. This classification remains even if the parents leave the state of Texas but still hold on to their H-1 or L-1 status.

Even if the student did not spend three years in Texas leading to a high school diploma, the student can qualify for in-state tuition - as a dependent of their parents. This assumes that the parents continue to live in Texas as their domicile - they live in a home in Texas, work in Texas, drive in Texas, and have a substantial connection to the state. The only time such dependent domicile becomes an issue is when the parents have to leave the state, say to go to California. Then, the student attending a Texas college is no longer an in-state resident for the purposes of tuition.

Students who covert to an F-1 visa will lose their in-state tuition privileges. The F-1 is a non-immigrant student visa and by definition, F-1 students are expected to return to their home countries after their studies even if the F-1 student in this case has no connections to the home country. The F-1 is NOT a dual intent visa - that is, unlike those on an H-1B visa, students on an F-1 visa are not permitted to apply for a green card directly, and therefore, cannot reasonably claim domicile in a state. USCIS rules prohibit F-1 students from attempting to gain domicile in a state for the purposes of enjoying in-state tuition benefits.

We recommend that students of H-1B families limit their school choices to state public universities and colleges.







A Note About Rao Advisors Premium Services
Our promise is to empower you with high-quality, ethical and free advice via this website.  But parents and students often ask us if they can engage with us for individual counseling sessions. We are indebted and privileged to have earned their trust in matters which are so important to them. Please check out our public Google reviews to see what they say about us.

Individual counseling is part of the Premium Offering of Rao Advisors and involves a fee.  Please  contact us for more information.




Preparing for Fall 2020 Online






By Rajkamal Rao  

The Drag at the University of Texas, Austin. Photo Credit: Rao Advisors LLC


Incoming college freshmen are having to contend with one of the most consequential decisions of their college careers as they consider the Fall 2020 term. To attend a university campus? Take hybrid classes? Or go online? 

So fraught has been this dilemma that even the U.S. government appeared unsure of what to do. Applying decades-old rules to manage the huge international student population, the government shocked the world when it announced that foreign students taking online-only classes had to leave the country or switch to an institution that offers in-person or hybrid classes - arguing that it would be hard to monitor students if they're at a different location but taking classes online. After a hue and cry, and a lawsuit from Harvard and MIT, joined by colleges in the University of California system, the government backed down. 

Going to college has always been about in-person friendships and relationships that last a lifetime. Cutting out one semester out of eight seems like such a big slice lost. For high school students locked at home since March, packing bags and heading to the college dorm was the most anticipated event. To now consider the possibility of extending the lockdown at home without making new friends, even as high school friends attend different institutions and no longer have much in common, is devastating for an incoming freshman.

Looking at the bright side

Although only 10% of the 1,200 colleges that the Chronicle of Higher Education is tracking are going fully online, some of the largest institutions are in this list: Harvard, all the colleges of the California State University system (23 campuses), the University of Alaska at Anchorage, the University of Arkansas (all campuses), the University of California at Irvine, UCLA, Rutgers, the University of Massachusetts, the University of Southern California and Wayne State University.

The obvious concern is about student safety as cases of coronavirus rapidly rise, even though there is plenty of evidence to suggest that young people are less likely to fall sick from the virus.






For a freshman, adjusting to college life requires independently managing both life and work, that is, academics. By taking classes online, freshmen will get used to college academics - attending college classes, listening to lectures, completing project assignments, taking tests, and managing time - all from the comfort of home. When students hope to return to campus for Spring 2021, they would be pros at college academics having completed an entire term online. All they then have to do is to adjust to college life, which should be easier to do.

College students are naturally attracted to campus life because the environment is designed to promote freedom, away from home. Students explore new topics, engage in debates, make new friends and hobbies, shed old ones, and mingle freely without reservation.

But attending a campus during the Covid-19 pandemic requires students to give up most of these freedoms. Students will be forced to honor social distancing, so loud parties are impossible. Class density will be reduced to 40% of normal, so the classroom doesn't feel like it usually does. Masks will be required to be worn at all times, an inconvenience for students who are engaged in vibrant conversation. Contact-tracing apps, while voluntary, infringe on student privacy rights, tracking student movement all over campus. Penalties for non-compliance can be steep, with fines, and even suspension. All of these headaches can be avoided until institutions come to terms with the pandemic and open up campuses with few or no restrictions.

Lastly, there's the issue of cost. For many families hurt economically during the pandemic, not having to pay for room and board can save thousands of dollars, in some cases, over $10,000.

On balance, staying home for Fall 2020 is not as bad as it seems.


A Note About Rao Advisors Premium Services
Our promise is to empower you with high-quality, ethical, and free advice via this website.  But parents and students often ask us if they can engage with us for individual counseling sessions.  We offer world-class SOP and essay reviewing services for a reasonable fee, starting at $99/hour.

Individual counseling is part of the Premium Offering of Rao Advisors.  Please contact us for more information.





Core Idea 4: Transfer to a 4-Year College






By Rajkamal Rao

Go back to Checklist for Core 4 Undergrads

 

 


This page is dedicated to undergraduates - that is, those that want to pursue a traditional 4-year US education to get a BA/BS degree.

The best-kept secret yet is that most good Community Colleges have articulation agreements with top schools.  An articulation agreement is a legally binding agreement between a 2-year Community College and a 4-year college detailing a simplified but guaranteed transfer from one to the other.

The idea of articulation is that you complete a pre-determined set of courses (or lesson plan) at a lower-cost college and transfer to a destination institution without questions asked (as long as you meet all the conditions of articulation). This provides what is generally called college or university "pathway" to millions of students who otherwise can't go to a 4-year college after high school graduation.

A 2022 study shows that while many four-year colleges expressed the need for facilitating transfer in an effort to maintain enrollment and improve diversity amidst the pandemic, the scope and impact of the efforts have proved to be limited, in part because of Covid-19. Transfer enrollment continues to drop, resulting in a double-digit enrollment decline over two years since the spring of 2020 (-16.0%).

So, 4-year colleges are even more ready than usual to accept transfer students. It is this fact that can be exploited to use upward transfer mechanisms to get admission to your desired 4-year college.


Example 1: Houston Community College to University of Houston Clear Lake

Suppose you're an underperforming student in high school who wishes to earn a 4-year degree in Information Technology.  Or suppose your family has constraints to send you to a 4-year college away from home. Whatever may be the reason, exploiting the Core 2 - Core 4 pathway is a great idea. For foreign students, this could be the Core 2 - Core 3 - Core 4 pathway because it gives them an additional 1-year OPT opportunity in between.

First, you would enroll at Houston Community College and take the required 42- credit minimum core curriculum towards earning an Associates Degree in the Arts and Sciences. You would also complete 18 credits in the elective of your choosing. Or you could directly consider transferring to the University of Houston for your BA degree in Information Technology, as long as you maintain a minimum of 2.0 GPA at the community college.

Notice how UH specifies exactly what courses to take - among a wide variety of courses - to meet its requirements for the degree. There's a lot of flexibility for the average student. But there's also specificity. It is this combination which makes articulation agreements so beneficial to both student and institution.

Example 2: Collin College to various degree programs at several colleges

Collin College has negotiated various pathways too many to list here. Check out their website for details.

An easy way is to decide with your area of interest. Suppose this is computer science. Click on the STEM option to see several options about this field. The closest program to computer science is 21-22 Computer Systems - Information Systems. Click on pathway. A .pdf document will open in a different window showing the exact menu of courses you need to complete, by semester, to transfer to your destination institution.

Notice that courses with a "c" designation represent core curriculum courses. All students pursuing an undergraduate degree must complete the 42-hour statewide Texas core curriculum. Core courses may be chosen from a large menu of classes offered under broad topic areas such as English Composition, Humanities, History, Government, Social Sciences, Math, Natural Sciences, and the Arts. Students can generally proceed to take classes in their major only after completing core curriculum requirements - and will do so after three semesters, assuming 15 credits a semester.


Example 3: Austin Community College to Texas A&M

Suppose you are interested to get a degree in Biomedical Sciences at Texas A&M University.  What are your chances of getting into Texas A&M as an international student as a traditional undergrad?  Even if you rate your chances as high, what would be the cost? Answer:  Flat rate tuition costs for international students are $10,913 per semester.


At Austin Community College (ACC), however, a five-course semester will cost $4,860 (a 3-credit course costs $972).  Luckily for us, ACC and Texas A&M have signed a binding agreement.  Accordingly, if a student completes a pre-determined list of courses at ACC totaling 67 credit hours, obtains at least a 3.6 GPA and doesn't score lower than a B in science and math, this student is automatically guaranteed admission to Texas A&M!

Let us look at the ROI analysis.  For this exercise, we are only considering tuition and fees but omitting all other expenses (living, health insurance, transportation, etc).

Traditional Option:  Complete all 120 Credit Hours at Texas A&M
Total Cost: $87,306 ($757.55 per credit hour x 120 credits)

Core Idea 4:  Complete 67 hours at Austin CC and 53 hours at Texas A&M
Cost at ACC: $21,708 ($324 per credit hour x 67 credits)
Cost at Texas A&M:  $40,150.15 ($757.55 per credit hour x 53 credits)
Total: $61,858.15

Your final 4-year degree will still be stamped by Texas A&M but the cost is nearly 29% lower.  Plus it was probably easier and more structured to get into the college to begin with.  You earn an Associates Degree along the way which you can add to your resume.  And if you're a foreign student on an F-1 visa, you have the chance to work, in the United States, as an intern for a full year if you exploit the Core 2 idea.

The ROI is clearly better in the second option.  We said earlier that we would prove to you that the Core 4 approach is off-the-beaten-track, requires hard work but is beneficial to you overall.  Many famous Americans have exploited this route, so you won't be alone in this adventure!

There is just one issue with this approach, though.  Not every 4-year college - indeed, the top private schools in the country - has articulation agreements with community colleges.  And by definition, articulation agreements are restricted to partners within a state - that is, the community college and the 4-year college both are generally present within the same state making transferring across state lines difficult.

Recognizing this gap, Quad Learning, a private company has slowly begun developing a network of community colleges and 4-year colleges across the country, called American Honors.  The site's mission statement says: "In collaboration with local community colleges and nationally renowned experts in higher education, we create new pathways for individuals to earn a high-quality bachelor’s degree."

The New York Times reports that at the community colleges participating so far, students in the honors program pay about $2,000 per year more intuition than their classmates. Quad Learning has long-term revenue-sharing agreements with each college.  “We like to think about the price as being halfway between a community college and a four-year, open-access university,” said Chris Romer, president of the company. “If we can do the first two years of college for $12,000, that’s a game-changer for a lot of families.”  Partner schools include Ohio State, Vanderbilt, Stanford, the University of Arizona, and Georgetown.

No matter which approaches you choose - the in-state Core 4 articulation method or the American Honors route - the win-win benefits are clear.  You can more easily get into a top-quality degree program but with a significant discount.


Example 3: Internal Transfer of major once already in college

While the focus of this article is to transfer from 2-year institutions to 4-year colleges, it is possible to apply to switch majors after starting your undergraduate career. For example, at the University of Texas at Austin, this process is known as internal transfer and is similar to the process of transferring to another university, as you must apply for admission to the college or school that houses the new major.


UT has published detailed guidelines about such transfers. This process is the same at most large and reputed universities where transfers are competitive. The process is much less formal at smaller institutions where all you need is the approval of your academic advisor.





A Note About Rao Advisors Premium Services

Our promise is to empower you with as much high-quality, ethical, and free advice as is possible via this website.  But students often ask us if they can engage with us for individual counseling sessions.

Individual counseling is part of the Premium Offering of Rao Advisors and involves a fee. Please contact us for more information. 






Introduction to College 529 plans






By Rajkamal Rao  

Image Courtesy: U.S. Department of Education
[We thank the State of Utah's My529 plan for technical content in this post.]

Section 529 of the Internal Revenue Code allows states, state agencies, and eligible educational institutions to sponsor qualified tuition programs (529 plans), which are tax-advantaged vehicles designed to encourage saving for future qualified higher education expenses and certain K-12 tuition expenses of a beneficiary.

If you're a parent, grandparent, or a relative of a student, you can become a 529 account holder. Anyone who is at least age 18, possesses a physical address in the United States and has a valid Social Security Number or Tax Identification Number can be an account owner. There are thousands of 529 plans in which you can invest. Contributions are on an after-tax basis, but any growth of the fund's value (through dividends and capital gains) is tax-free. This feature is the most attractive benefit of qualified tuition programs.

Anyone can contribute to a 529 account regardless of who owns the account, but only the account owner has control over how money is invested and used. Only the account owner is eligible for federal and state tax benefits. The maximum aggregate account balance for all 529 accounts for the same beneficiary is $485,000.

The account beneficiary is the student for whom you are investing money for their qualified higher education or K-12 tuition expenses. Any person with a physical address in the United States and a valid Social Security Number or Tax Identification Number can be a beneficiary.

Funds in the 529 plan can be used for "qualified" education expenses when the student attends an eligible educational institution. An eligible educational institution is any college, university, or vocational school in the United States or abroad qualified to participate in federal student aid programs. You can determine the eligibility of an educational institution by going to the U.S. Department of Education’s Database of Accredited Post Secondary Institutions and Programs (DAPIP) or the Federal Student Loan Program list. According to a 2023 law, up to $35,000 in funds remaining in a 529 plan can be rolled over into a Roth IRA for the student (the beneficiary). This will encourage more parents to invest in 529s knowing that they don't have to pay taxes on withdrawals after their qualified expenses have been met.

To be considered a qualified withdrawal, money must be withdrawn from an account in the same period that educational expenses are incurred. Examples of qualified education expenses: 

  • K-12 tuition expenses of an account beneficiary who attends a public, private or religious school (up to $10,000 per calendar year per beneficiary from all qualified tuition programs). 

  • College tuition, mandatory fees, books, supplies, and equipment required for the beneficiary to enroll and attend an eligible higher educational institution.

  • A computer, peripheral computer equipment, software, and internet access while enrolled in
    an eligible higher educational institution.

  • Room and board, if the beneficiary is enrolled at least half time. Half-time enrollment is
    defined as half of a full-time academic semester or term workload. Costs cannot exceed the allowance for room and board as determined by the eligible higher educational institution.

Account funds that are used for any purpose other than to pay for the qualified higher education expenses are nonqualified withdrawals and are subject to taxes and penalties. Examples of nonqualified higher education expenses include:

  • Transportation expenses

  • Cellphone plans

  • Sports and fitness club memberships

  • Health insurance

Tax treatment of 529 withdrawals (1099-Q) - EXAMPLE

When parents contribute funds into a 529 plan, they do so on their after-tax income. That is, contributions to a 529 plan are not tax-deductible, like IRA or 401K plans. But funds already in a 529 account grow tax-free.

Suppose that parents contribute $100,000 into their daughter's 529 plan over 10 years. And over time, suppose that the fund has grown to $155,000.

The $55,000 gain in the fund is not taxable if the money is used for qualified educational expenses, such as tuition, books approved by the university as required, meals, and housing costs as determined by the university. But the funds become taxable to the daughter, the beneficiary, if funds are used for unqualified education expenses such as transportation, cellphone plans, health insurance fees, gym memberships, and extracurricular activities. The gain is NOT taxable to the parents.

The daughter begins her college journey with the parents paying more than half of her cost of attendance (tuition, fees, room and board) using the 529 plan as the funding vehicle. Suppose the daughter incurs $25,598 in tuition, fees, and room and board expenses for her first year in college. Suppose that the daughter also has a full ride from the school's endowment - that is, the daughter's tuition is paid for by an entity other than the university.

The family withdraws the $25,598 from the 529 plan. Because this entire amount is qualified (tuition, fees, room, and board), it is 100% tax free. But the daughter has also received $13,500 as a scholarship from an endowment. This amount is taxable to the student.

During tax season, the family gets three sets of forms:

  1. 1098-T (a record of all tuition payments made to the university and any scholarships or grants received); 

  2. 1099-E (a record of the daughter's loan payments, if any, addressed to the daughter); and

  3. 1099-Q (a record of disbursements from the fund operating the 529 plan, addressed to the daughter).

Parental tax return: Because the daughter depended upon her parents for more than 50% of her living expenses, her parents should claim her as a dependent on their tax return. The parents will enter the 1098-T form details into their Form 1040 and claim one of two tax credits (the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC)) if they meet income requirements. Tax credits reduce taxes owed dollar for dollar.

Student tax return: The student will also enter the 1098-T form to record scholarships received. Because the daughter was the beneficiary of the 529 plan disbursements, she must pay taxes on the gain if used for unqualified expenses. But all of her expenses were qualified. The 1099-Q will have the following key fields populated.


1099-Q form. Image Courtesy: Rao Advisors
  • Box 1 (Gross Distribution): $25,598

    • Box 2 (Earnings): $13,828

    • Box 3 (Basis): $11,770
The fund has calculated that over the life of the account, the parents paid in the Box 3 amount as the principal - the Basis. The basis grew by the interest amount - the Earnings - in Box 2. The sum of the two amounts was paid to the university as Gross Distribution on the student's behalf.

The daughter must file a tax return - as an individual - to report Box 2 earnings as income if used for unqualified expenses. But all earnings went to pay for qualified expenses - so they would cancel out for tax purposes. She should enter all of her education expenses - tuition, books [required by the university), books (not required by the university)], room and board, computers, internet, etc.

In this case, the daughter received $13,500 in a scholarship which is taxable. So this amount appears on the student's return as income. If the student had an educational loan to pay for additional expenses not allowed by the 529 plan, she would enter 1099-E details into her tax return. For this example, let us assume that she has no education loans to report.

For 2021, her tax due would be $1,123 (tax owed because of the scholarship). To avoid penalties, she should have made four equal estimated tax payments of $281, one per quarter, leading up to tax filing day - or else incur a penalty for underpayment of taxes. Most students would not think of doing this. Luckily, if this is her first year of paying income taxes and she did now owe any taxes for the previous year, 2020, the IRS allows a one-time penalty waiver.

But for subsequent years, the IRS will impose a penalty if the student does not make her regular EST payments.





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Articles Archive







Rajkamal Rao's list of TV appearances and newspaper articles


Rajkamal Rao is a verified Muck Rack journalist with his work appearing in print, online, on TV, and radio. He is an ardent sports fan - click here for an archive of his work covering sports.  



 


ET Now 


ET Now is an English-language business and finance news channel in India, owned and operated by Bennett Coleman & Company Limited. It has evolved to also encompass Politics, Governance, Environment, and Technology under its domain of coverage. It is headquartered in Mumbai.

Rajkamal Rao has participated in numerous debates on the ET Now television channel. Here is a list of his TV appearances




TIPP insights



About Tippinsights

Rajkamal Rao is a columnist for tippinsights, and a member and lead writer of the tippinsights Editorial Board. Here is a list of his recent articles where he served as the only EB writer. Many of his by-line pieces are also carried on Bo Snerdley's DailyBS website. Snerdley served as conservative radio host Rush Limbaugh's call screener for 30 years.

Rajkamal Rao's work is regularly featured in RealClearPolitics, America's largest curator of opinions, editorials, and polls.

Tippinsights - the home of America's public opinion and independent news - is from America's 
most accurate pollster, the only organization that accurately predicted the margin of victory in the last five presidential elections.




The Hindu BusinessLine


The Hindu BusinessLine, part of the well-known The Hindu group of publications, is a business daily published from 16 Indian cities. Rajkamal Rao started writing op-ed columns for the paper in October 2012.





BusinessLine on Campus


With a rich corporate-academia-student interface, this portal features news stories and analysis from the Hindu BusinessLine’s extensive network of correspondents as well as exclusive articles by senior corporate executives and HR professionals, many of whom teach at top B-schools.

Rajkamal Rao wrote his first Worldview column when the portal launched in April 2015. He wrote 283 columns, ending with the last publication of the paper in December 2022 - marking a record as the longest-serving columnist for The Hindu group. Here is the full list



Rajkamal Rao is frequently quoted in the media. 


Rajkamal Rao's Biography




Preparing teenage children for summer


Image: Rao Advisors


By Rajkamal Rao

As families heave a sigh of relief to celebrate the end of the long school year and usher in the summer, there are a few tips to make the time off enjoyable and beneficial. Here's our guide, broken down by current grade level. For a full list of outstanding summer opportunities, please check out our popular post #49.

12th grade - students about to enter college
These teenagers are in for a tough but well-deserved transition as they prepare to leave loving homes and venture out into the open world. If they are the kind where the mother and father have done most of the heavy lifting at home - laundry, cooking, ironing, sewing - now is the time to teach them basic life survival skills. Sign them up for a credit card because this will help them build a credit history even if it is the parents who are paying for the card. Teach them basic personal financial literacy skills, including banking, borrowing, and saving. 

If they're already not driving, make sure they quickly acquire a drivers license. Ensure that their passports are in order - you don't want them to miss out on a semester abroad program because their passports are expiring soon. Some schools, like Northeastern University, allow college freshmen to start their first semester abroad in an exotic location, such as Ireland or Italy.
 
If students have time before they start college in the Fall, they could consider an academic summer program or work or an internship.


11th grade
These children have the most at stake as they enter the senior year in high school. They're also the most likely to have an active summer.

If they have already completed their SAT/ACT tests, invest time to shortlist colleges. Every college which participates in Title IV financial aid, that is, disburses federal grants and loans, is required by law to publish the 25th and 75th percentile SAT/ACT "cutoff" scores. The U.S. Department of Education's College Navigator website is an excellent resource here. Use these benchmarks to initially bucket your desired college into safe, core, and dream categories.

For those colleges which record a campus visit as an expression of student demonstrated interest, we strongly recommend that you take your teenager on an official campus tour. Have your student sit in on an information session, attend classes (although fewer are offered during the summer), have lunch at the cafeteria, and if possible, have the student stay over at the dorm for the night to experience first-hand one of the most important elements of college life. Maintain a log of your visit - we recommend updating thoughts immediately on an iPad or tablet using a campus visit questionnaire.

If your desired college has a firewall policy in place where the admissions office is not even aware of your campus visits (such as elite schools such as Harvard, Yale, Brown and Princeton) and frankly doesn't care that you visited, a virtual campus tour is a great way to learn more about the institution.

Whatever method you employ, use your campus tours to narrow down your shortlist.

Summer is the time when your student must complete the Common App essay, and at least get the outline of supplemental essays complete. Invest in a professional - we have a highly successful track record here - to proofread your student's essays. Remember that essays may ultimately be the most important factor in college admissions. Refer to our primer on essays - and contact us for help.

Finally, summer is the time to continue your extracurricular activities in leadership, service - or even a job. They could consider an academic summer program or an internship. 
 

8th - 10th grade
These children have earned the right to enjoy their summer, but should guard against the summer slump when the long vacation can cause them to forget key skills they learned during the school year. At a minimum, encourage your children to practice reading, writing and math, using the Khan Academy. If your child is already into reading books, use the Khan Academy website to practice math. We strongly recommend constant practice at the Khan Academy and ACT Academy websites to prepare for the SAT/PSAT and ACT respectively.

Summer is the time to make sure your student's course roadmap for the remaining years of high school is well planned out. Check to see if your student has to meet prerequisites for a course by taking a credit by exam - or take an online course from TxVSN or the UT online school.

Summer is also the time to update your student's bragsheet. For students pursuing liberal arts interests, it is the time to build a profile of their work - recordings, literary pieces, videos, etc. Use the free Coalition Access platform to build your bragsheet and profile. Over 80 top colleges accept the Coalition Access application for admissions.

If students have time, they could consider an academic summer program or an internship.


Key Takeaways
Summer is a great time for children to relax, indulge in sports and pursue their passions. Extracurricular activities are an important part of who students are. Refer to our blog post for tips.


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